IB DP Business Management Quiz: Sources Of Finance

20 Questions | Total Attempts: 327

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IB DP Business Management Quiz: Sources Of Finance

Revision for IB DP Business Management.


Questions and Answers
  • 1. 
    Share capital is secured by the assets of the business (used as collateral)?
    • A. 

      True

    • B. 

      False

  • 2. 
    A company that buys the debt of another firm at a lower price then the debt is worth and for cash is known as
    • A. 

      Trade Credit

    • B. 

      Debentures

    • C. 

      Factoring

    • D. 

      Drafts

  • 3. 
    Which of the following is most suitable for a public company needing billions of dollars?
    • A. 

      Debentures

    • B. 

      Loans

    • C. 

      Venture Capital

    • D. 

      IPO

  • 4. 
    Buy now, pay later is known as
    • A. 

      Grants

    • B. 

      Factoring

    • C. 

      Trade credit

    • D. 

      Retained Profit

  • 5. 
    Which of the following is most suitable for purchasing equipment?
    • A. 

      Leasing

    • B. 

      Debentures

    • C. 

      Mortgage

    • D. 

      Share capital

  • 6. 
    Which of the following is most suitable for purchasing property?
    • A. 

      Leasing

    • B. 

      Debentures

    • C. 

      Mortgage

    • D. 

      Share capital

  • 7. 
    Which of the following is most suitable for purchasing vehicles?
    • A. 

      Leasing

    • B. 

      Debentures

    • C. 

      Mortgage

    • D. 

      Share capital

  • 8. 
    Unused assets such as old machinery are called
    • A. 

      Dormant assets

    • B. 

      Current assets

    • C. 

      Stock

    • D. 

      Inventory

  • 9. 
    Which of the following typically offer a larger amount of financing?
    • A. 

      Angel investors

    • B. 

      Venture capitalists

  • 10. 
    Which of the following is not true about Angel investors?
    • A. 

      Wealthy individuals

    • B. 

      Interested in taking a role in the firm by offering their expertise

    • C. 

      Gets some ownership in the business

    • D. 

      Have to be paid back principal and interest

  • 11. 
    When a firm takes out more money than is in their account, it is known as
    • A. 

      Overdraft

    • B. 

      More draft

    • C. 

      Extended draft

    • D. 

      Trade credit

  • 12. 
    Which of the following companies is most likely to receive sponsorships?
    • A. 

      Pharmaceutical companies

    • B. 

      Financial firms

    • C. 

      NPO's and sports teams

    • D. 

      Technology companies

  • 13. 
    Hire purchase is different from leasing in that
    • A. 

      You pay for the product over time

    • B. 

      You keep the product when you are done paying for it

    • C. 

      You pay interest

    • D. 

      You hire a contractor with the purchase of the asset

  • 14. 
    Which of the following is not an example of capital expenditures?
    • A. 

      Property

    • B. 

      Furniture

    • C. 

      Machines

    • D. 

      Utilities

  • 15. 
    Which of the following is not an example of capital expenditures?
    • A. 

      Buildings

    • B. 

      Wages

    • C. 

      Trademarks

    • D. 

      Vehicles

  • 16. 
    Which of the following is not an example of revenue expenditures
    • A. 

      Property

    • B. 

      Advertising

    • C. 

      Insurance

    • D. 

      Repairs

  • 17. 
    Which of the following is not an example of revenue expenditures?
    • A. 

      Rent

    • B. 

      COGS

    • C. 

      Vehicles

    • D. 

      Interest on loans

  • 18. 
    When a firm is going to go from private to public they have a
  • 19. 
    Which of the following is a long term source of finance?
    • A. 

      Debentures

    • B. 

      Trade credit

    • C. 

      Leasing

    • D. 

      Working capitl

  • 20. 
    Venture capitalists typically look for
    • A. 

      Well established companies

    • B. 

      Start up companies with huge growth potential though lots of risk

    • C. 

      Public companies that are having a difficult time and selling for cheap

    • D. 

      Companies that are very capital intensive

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